Stocks on track for worst week in two months

Dow Jones: 11,800.85 (+30.12) Nasdaq: 2,578.96 (-9.03 ) S&P 500: 1,217.02 (+0.89)US STOCKS fell, with the Standard and Poor's 500 Index completing its biggest weekly drop in two months, as a decline in technology and energy companies overshadowed optimism that the economy is accelerating. Chevron Corp and Halliburton slumped at least 2.2 per cent as oil fell for a second day.

Salesforce.com, the largest maker of online customer-management software, lost 10 per cent as billings missed some estimates.

Hewlett-Packard rallied 2.6 per cent after adding Relational Investors LLCs Ralph Whitworth to its board. Boeing advanced 2.1 per cent after winning a provisional order for 230 aircraft from Lion Air.

“Until we have some sense of stability in Europe, the volatility will continue,” Mark Bronzo, who helps manage $24 billion at Security Global Investors in Irvington, New York, said in an e-mail. “Better economic growth in the US will provide support for the markets and potentially set the stage for a nice rally if and when Europe does stabilise.”

The SP 500 swung between gains and losses as investors watched developments in Europe. The Conference Boards index of US leading indicators rose more than forecast, signalling the largest economy will keep growing in 2012.

The US economy may end 2011 expanding at its fastest pace in 18 months as analysts increase their forecasts for the fourth quarter.

Chevron decreased 2.2 per cent to $97.88. Halliburton lost 2.9 per cent to $35.96. Salesforce.com tumbled 10 per cent to $113.43. Billings rose 29 per cent in the fiscal third quarter from a year earlier, said Pat Walravens, an analyst at JMP Securities LLC, who has an “outperform” rating on the shares. That missed his 33 per cent growth estimate.

The figure is seen as a benchmark of momentum at the company, whose shares had climbed more than 10 per cent in the past six weeks.

HJ Heinz fell 3.3 per cent to $51.07. The biggest ketchup maker affirmed its forecast for current fiscal year earnings of no more than $3.32 a share. Analysts on average estimated $3.34 a share, according to a Bloomberg survey.

Hewlett-Packard jumped 2.6 per cent to $27.99. – (Bloomberg)